When to apply for loans?

[melly_mel]

Hi all,

This may be a silly question, but...when do you apply for Stafford and PLUS loans? I haven't heard from my financial aid office yet, and I'm assuming I wait until I'm officially enrolled but I'm not sure. I'll be taking off to travel soon, so I want to make sure that I have things in order and know when to expect to need to fill out paperwork. I'm making my mom my power of attorney while I'm gone, just in case anything needs to get done on paper rather than taken care of online. More than the move, or even school itself, the financial piece of the whole thing is what freaks me out/worries me the most.

Thanks!

[ANDS!]

So at this point in time you haven't actually been admitted into a program? I would say you still need to fill out the FAFSA and list the schools you are interested in toot sweet. There really is no reason to wait, and if you aren't admitted no FA package is prepared for you. If you wait, you run the risk of not getting any aid (though I've yet to run into someone who has said that has happened).

Also be aware that the kind of aid a graduate student can get has changed. I think the PLUS loan (is that the one for parents) is still in effect, but you can only get Unsubbed Stafford loans. I was approved (if there even is a vetting process) for the full amount, which is 20500 per year.

[OregonGal]

So federal student loans are generally directed through the university financial aid office--they should be part of your financial aid package when you receive it, so long as you filed your FAFSA by March 1 (some schools it's a later deadline). ANDS is correct that Stafford loans--currently planned to go up to 6.8% unless Congress stops bickering and extends the interest rate reduction to keep it at 3.4%--only offer up to $20,500 a year to graduate students. Beyond that you'll be offered up to total cost of attendance (minus Stafford, grants, etc) in Grad PLUS loans which are currently offered at 7.9% and have no cap.

[melly_mel]

great, thanks. i figured it would all be through my financial aid office, but i've still yet to hear from them. i know that financial aid information lags behind admittance letters, i just wasn't sure how long it would be or if there's anything i should do in the interim. i believe the amount they offer for stafford loans is based on your EFC. i need to submit paperwork to adjust my EFC, given that i'm leaving my job soon and it changes the estimation.

[ANDS!]

Graduate Stafford Loans are unsubbed loans and are still at the 6.8%. It's the subbed loans that they want to jack to 6.8%, which kinda sucks for current undergrads. The unsubbed loan you will get, so long as you apply in time. It is ONLY based off eligibility requirements, not financial need. So so long as you weren't a drug runner before coming to school, you should get the full amount (if you want it).

[psychgurl]

My program's financial aid office didn't contact me at all. I had to fill out a FAFSA (just google it for the website), which asked about my tax returns last year and basic info. It was forwarded to my school. I received a financial aid award letter from my school telling me how much I was offered. After that, you just follow the directions for filling out the Promissory Notes and completing the FAFSA loan tutorial workshop. I think financial aid is generally the student's responsibility, and the financial aid office at your program probably won't prompt you to apply for aid.

[OregonGal]

However, if you have applied for aid--especially at a state school--you may still be waiting a few weeks to hear back. They can't finalize aid offers with specific numbers until they have determined tuition rates for the next academic year, which doesn't happen until June or July at a lot of public schools waiting on public funding initiatives.